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About Licensing

Multicore Processor Licensing

Dual-core processors were introduced into the market by Advanced Micro Devices (AMD) and Intel Corp. in 2005. A processor that contains multiple cores, and that uses its ability to execute multiple tasks, offers a higher level of computing power and functionality than the current generation single-core processor. As this new technology comes to market, software companies are examining how software licensing policies will adapt.

Microsoft is working to ensure that our licensing models continue to support our customers' business needs. Our customers and partners continue to evaluate new hardware and software technologies in the marketplace. Microsoft also continues to review current product licensing models to better enable these solutions. As a result, Microsoft has further defined our licensing policy with regards to how server software is licensed on a system that contains dual-core and multicore processors.

Licensing Microsoft Software on Multicore Processors

On October 19, 2004, Microsoft announced that its server software that is currently licensed on a per-processor model will continue to be licensed on a per-processor, and not on a per-core, model. This policy enables customers to recognize more performance and power from Microsoft software on a multicore processor system without incurring additional software licensing fees.

Licensing on a per-processor instead of a per-core basis ensures that customers will not face additional software licensing requirements or incur additional licensing fees when they choose to adopt multicore processor technology. Customers who use software from vendors that license by individual core, as other software vendors currently do, may face increased software costs when they upgrade to multicore processor systems. Multicore processor systems licensed on a per-processor basis will also help make this new enterprise computing technology affordable to midsize and small business customers.

Multicore Processor Summary Diagram

Server software licensed on a per-processor basis for systems with multicore processors requires only one software license per processor.

Single-Core Processor System—Customer A

Multicore Processor Summary Diagrams

Customer A has a system with a single processor with one processor core. Only one server software license is required per processor.

Dual-Core Processor System—Customer B

Multicore Processor Summary Diagram

Customer B has a system with a single processor with two processor cores. As in the example with Customer A, only one server software license is required per processor.

Dual-Core Processor System—Customer C

Multicore Processor Summary Diagram

Customer C has a system with two processors, and each processor has two processor cores. One server software license would be required per processor.

Frequently Asked Questions

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A physical processor is a single chip that houses a collection of one or more cores. A core is a collection of one or more processor threads and a set of shared execution resources. A processor thread is the architectural state within a processor that tracks execution of a software program thread/task.

The licensing policy is current as of October 19, 2004. Dual-core processors and dual-core processor systems are expected to be available in mid-2005. Microsoft is moving in parallel with hardware technology innovation to ensure that customers have the appropriate information to budget and plan for their business needs as multicore technology becomes available.

No. The customer will incur the cost for one software license per processor, not per core. So if a customer replaces the single-core processor on a system with a multicore processor, only one license per processor is needed.

Windows XP Professional and Windows XP Home are not affected by this policy because they are licensed per installation and not per processor. Windows XP Professional can support up to two processors regardless of the number of cores on the processor. Windows XP Home supports one processor.

No. Many factors influence the number of licenses customers need. The licenses are still valuable and customers may use them as their software needs change.